Not every buyout is welcomed with open arms. Atheros Communications
The vote was scheduled for today, but a court order has moved it to March 18 so shareholders can review a few additional disclosures. The slightly-above-25% buyout premium wasn't rich enough for some shareholders' blood, inspiring cries of "fiduciary duty" and "undervalued." And so it goes.
This merry dance has become a fact of life in modern mergers and acquisitions. Marvel was sued on similar grounds when Walt Disney
These suits rarely affect the outcome of buyouts but they made a difference this time. Now we know that Atheros CEO Craig Barratt was promised early on to have a job with Qualcomm after the merger, and we've seen the $24 million fee Atheros will pay to advisor Qatalyst Partners if the deal goes through. Atheros owners don't appear terribly concerned by the delay as share prices hardly moved on the news.
A cynic might call these lawsuits self-serving cash grabs, while others could call it protecting shareholder interests. Where do you stand? Discuss in the comments below.
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